TOP TIPS for Building & Pest in QLD

Short answer: yes. Under the standard REIQ contract, if the building and pest report is not satisfactory to you, you can terminate by written notice before 5pm on the Inspection Date and get your deposit back - but only if you are acting reasonably. A dripping tap will not get you out. Active termites, structural movement or serious water damage usually will.

Watch George walk through the clause on YouTube.

What does the building and pest clause do?

It protects the buyer. The contract is conditional on you getting a building and pest report you are satisfied with, so you are not locked into buying a house with major defects you could not see at the open home.

How long do I have to get the building and pest inspection done?

As long as the contract says. The Inspection Date is negotiated between buyer and seller - 7 or 14 days is common, but it can be any period. Book the inspector the day the contract is signed. Every day lost waiting for a booking is a day less to negotiate if the report comes back bad.

Can I get out of the contract if the building and pest report finds problems?

Yes, if you are acting reasonably. The test is whether you would have signed the contract at all had you known about the problem. Major structural issues, termites and significant water damage are the kind of defects that meet it. Minor wear, a broken light fitting or a leaking tap do not - and a termination on trivial grounds can be challenged by the seller.

If you terminate validly, the contract ends and your deposit is refunded.

What are my options if the report comes back bad?

• Terminate. End the contract and get your deposit back.
• Ask the seller to fix it. Request repairs before settlement. The seller does not have to agree and can counter-offer.
• Ask for a price reduction. Negotiate a lower price to cover the cost of the work.

Options two and three are negotiations, and the clock keeps running while you have them. If nothing is agreed in writing by the Inspection Date, you need to decide whether to terminate or ask the seller for a written extension - before the deadline, never on the day. We work with the agent to get it done in time.

What happens if the Inspection Date passes?

The contract does not end, and the condition is not treated as satisfied. If you have not satisfied the condition or terminated by 5pm on the Inspection Date, the seller can elect to terminate the contract. If they do, your deposit is refunded and the contract is at an end - which means you can lose the house while you are still negotiating over it.

Does the building and pest inspector have to be licensed?

Yes. The inspection has to be done by a qualified inspector who is licensed to carry out building and pest inspections in Queensland. A report from a builder mate or a handy uncle will not satisfy the clause. If you need a recommendation, we can refer you to an inspector.

Do I have to give the seller a copy of the report?

If you terminate on the building and pest clause, the seller can ask for the report and you must provide it without delay. Have the licensed inspector’s report ready before the termination notice goes out.

What does the building and pest clause actually say?

Below is an extract of the building and pest condition from an earlier edition of the REIQ contract. Wording changes between editions, and special conditions can change it again, so check the version in your own contract.

What should I ask the inspector when buying a Queenslander?

Older Queenslanders need a closer look than a standard inspection gives them. If you are buying a Queenslander, ask your inspector to report specifically on the stumps, the roof iron, borer in the timber frame, and asbestos in the eaves and linings.

A building and pest report tells you about condition. It does not tell you about approvals. A deck or carport can be structurally sound and still have been built without council approval, which becomes the new owner’s problem. That gap is exactly what title insurance in QLD is designed to cover.